Which Statement is true regarding taxation in Pennsylvania?
A) 401K Contributions are exempt.
A) Incorrect. 401K Contributions in Pennsylvania are taxable.
B) Pennsylvania has reciprocal agreements with Indiana, Maryland, Ohio, New Jersey, Virginia, West Virginia.
B) Correct. Way to go! Click here to see a list of states with reciprocal agreements to learn more.
C) The state income tax is based on the tax tables.
C) Incorrect. Pennsylvania has a flat withholding rate of 3.07%. Click here to visit the State Tax Snap Shot to learn more.
D) Reciprocal agreements apply at the local level.
D) Incorrect. Reciprocal agreements only apply at the state level. Click here to learn more about reciprocal agreements.
E) All of the above.
E) Incorrect. Please try again.